REDMOND, Washington: Bill Gates announced Thursday his decision to give up his day-to-day role in Microsoft Corporation in two years, decades after he launched one of the highly successful information technology ventures that virtually shaped the course of the global information age.
Gates, a Harvard dropout, who founded Microsoft with Paul Allen 30 years ago and became the world's richest man, said he would devote much of his time to philanthropy focusing on global health and education and work through the Bill and Melinda Gates Foundation.
He told a news conference he would not altogether leave the company and will remain chairman and retain his large holding in the company. He will, however, relinquish responsibility as the chief software architect of the company immediately and reduce his involvement in a phased manner during the two-year period. He will give up all his operational responsibilities by July 2008.
Gates, 50, said he hoped to stay as chairman of the world's biggest software company "for the rest of my life". He would also see himself as the largest shareholder in the company, he added.
His business partner for 26 years and one time college classmate Steven A. Ballmer will continue to be the chief executive of the company. The position of chief software architect will be immediately taken over by Ray Ozzie, 50, one of the three chief technology officers of the company. Ozzie, who is credited with the conception of the highly successful Lotus Notes, had joined Microsoft in 2005, after his software firm, Groove Networks, was acquired by Microsoft, and has been evolving the company's internet strategy in the wake of challenges faced from Google and Yahoo.
Gates said he and Ballmer had begun discussing about the transition for some time and a firm decision was taken in the last few weeks. His primary motivation in stepping down from the executive functions in the company is his desire to be more involved with the work of the foundation. He has already committed to shift most of his fortune -- his stake in Microsoft alone is worth around $21.6 billion -- to the foundation.
The foundation, which focuses on health and education issues, particularly in the emerging world, has assets worth $29.1 billion and is the richest charitable organization in the world.
Analysts say his decision to cut down on his day-to-day involvement in the company comes at a very critical time for the company. While its business continues to be profitable and its revenues increasing at an appreciable level, there is apprehension among the company supporters that it is not able to make any noteworthy progress in getting into the new markets -- specifically internet-based products and services, gaming and the highly lucrative web advertising. The company's stock has fallen from $28.38 in 2005 to $22.07 Thursday. At one time, the price had been at a peak of $58.89.
Gates was nostalgic at the press conference. He said, "When Paul Allen and I started this 30 years ago, we had big dreams about software. I have no doubt that over the next 30 years that Microsoft will play just as important a role as it has over the last 30 years."
In the new scheme of things, another chief technical officer, Craig J. Mundie, 56, will be redesignated chief research and strategy officer. He will ultimately take over charge of the company's research and product development efforts.
In September 2005, Ballmer had reorganized the company into three distinct divisions -- operating systems, the Office product group and an entertainment and hardware business-- each with its own president.
